Compensation paid to the listing agent represents a significant portion of the cost of a true investor transaction. So the risk is to get stuck with a crappy agent when you start. I think that investors should negotiate their terms of the listing agreement so that they are not imprisoned for too long, and that they should also negotiate the agent commission so that it provides the agent with fair compensation given the volume of investors. Investors with higher volumes will naturally be able to negotiate these terms better. In Florida, the deadline for the list agreement is negotiable and terminated at any time. While this agreement allows them to seek the help of real estate agents if you can`t sell your home yourself, real estate agents are a little reluctant to spend their time selling a property without a guaranteed commission when it`s sold. There are situations where you can expect your sale to last even longer – if your home is located in a rural area, for example. Although a one-year listing period may sound like a long time, it could be the norm for your particular market. This could apply to homes that are expensive, unique or on large land. It also applies to holiday homes, villas or even private islands, which need significant marketing time to find the right buyer. A good real estate agent will not agree to give money to real estate marketing like this, unless they have enough time to make the sale. The list agreement, especially the exclusive list agreement, includes everything included in your sale (devices, chandeliers, etc.) until real estate agents are compensated. I made list agreements for 7 days, two months and even a day, because I knew what to do to put the property under contract.
If it was just my money, they wouldn`t give that I lost 5k. If it`s their money, they think long and hard to spend it. I am always amazed at what some brokers and agents will agree in a list agreement. A list agreement should not cost anything in advance. On the contrary, it determines the compensation of the real estate agent after the closure. “List agreements have a clause that says if something happens and you separate from the company, the sellers are responsible for the listing agent`s expenses,” Lenchek adds.